Michigan sports betting seemed to benefit from being part of a package with the internet gambling bill, also passed by the Michigan Senate on Wednesday. Taxes and fees are more favorable to the industry, making the higher rates of the iGaming bill easier to accept.

Details include:

Sports betting may be offered at Michigan’s three commercial casinos and 23 tribal casinos, pending licensure.

A sports betting operator may use no more than one internet sports betting platform.

A tax of 8.4% on adjusted gross sports betting receipts (commercial casinos pay an additional 1.25% city tax to Detroit, which legislators say is effectively 3.25%). Money given to customers for free-play promotions may be deducted from the gross receipts before taxes are levied.

Fees to offer sports betting include $50,000 for an initial application, $100,000 for the license and $50,000 annually.

The majority of state tax revenue from sports betting supports the School Aid Fund, while $2 million annually goes to the First Responder Presumed Coverage Fund that helps firefighters undergoing cancer treatments.

Use of official league data is mandated for in-play wagers unless operators can convince the Michigan Gaming Control Board that data is being offered at commercially unreasonable terms.

If federal law allows (which it currently does not), the board may enter into agreements with other jurisdictions to offer multi-state sports betting.

Daily fantasy sports gets the green light in Michigan

DraftKings and FanDuel already are operating in the state. They will be taxed at 8.4%, the same rate as sports betting. Fees were lowered from the House bill to $20,000 for an initial license and $5,000 annually.

Governor expected to sign legislation

Hertel indicated that members of the administration, empowered by the governor, took part in meetings he facilitated to come to terms on a gaming package that Whitmer would support.

Tiffany Brown, a spokesperson for Whitmer, confirmed that the governor is on board with the changes made in the Senate, said in a statement:

“The governor is pleased with the progress made on gaming over the course of this year, particularly once Sen. Hertel and Rep. [Rebekah] Warren were able to engage and resolve key issues to get this package across the finish line. … This is a good, bipartisan solution made possible by working together on a complex issue, and the governor looks forward to closely reviewing this package once it hits her desk.”

Written by

Matthew Kredell

Matthew started his career as a sportswriter at the Los Angeles Daily News, where he covered the NFL, Kobe-Shaq three-peat, Pete Carroll’s USC football teams, USC basketball, pro tennis, Kings hockey and fulfilled his childhood dream of sitting in the Dodgers’ dugout. His reporting on efforts to legalize sports betting began in 2010, when Playboy Magazine flew him to Prague to hang out with Calvin Ayre and show how the NFL was pushing US money overseas by fighting expansion of regulated sports betting across the country. A USC journalism alum, Matt also has written on a variety of topics for Men’s Journal, Los Angeles magazine, LA Weekly and ESPN.com.